Bill Text: CA AB2474 | 2013-2014 | Regular Session | Chaptered
Bill Title: County employees retirement: benefits.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2014-09-28 - Chaptered by Secretary of State - Chapter 741, Statutes of 2014. [AB2474 Detail]
Download: California-2013-AB2474-Chaptered.html
BILL NUMBER: AB 2474 CHAPTERED
BILL TEXT
CHAPTER 741
FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2014
APPROVED BY GOVERNOR SEPTEMBER 28, 2014
PASSED THE SENATE AUGUST 19, 2014
PASSED THE ASSEMBLY AUGUST 20, 2014
AMENDED IN SENATE AUGUST 14, 2014
AMENDED IN ASSEMBLY APRIL 28, 2014
AMENDED IN ASSEMBLY APRIL 8, 2014
INTRODUCED BY Committee on Public Employees, Retirement and Social
Security (Bonta (Chair), Rendon, Ridley-Thomas, and Wieckowski)
FEBRUARY 21, 2014
An act to amend Sections 31462.05, 31462.2, 31563, 31631, 31649,
31649.6, 31653, 31781, 31781.3, 31781.31, and 31787.6 of the
Government Code, relating to county employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 2474, Committee on Public Employees, Retirement and Social
Security. County employees retirement: benefits.
The County Employees Retirement Law of 1937 (CERL) authorizes
counties to establish retirement systems pursuant to its provisions
in order to provide pension benefits to county, city, and district
employees and their beneficiaries. The CERL provides for a defined
retirement benefit based upon credited service, final compensation,
and age at retirement subject to specified formulas relating to
membership classification.
The California Public Employees' Pension Reform Act of 2013
(PEPRA) requires a public retirement system, as defined, including
county and district retirement systems created pursuant to CERL, to
modify its pension plan or plans to comply with the act and, among
other provisions, establishes new limits of pensionable compensation
that may not be exceeded whenever pensionable compensation is used in
the calculation of a benefit. PEPRA defines pensionable compensation
for purposes of its provisions.
This bill would clarify that the definition of final compensation
for members whose services is on a tenure that is temporary,
seasonal, intermittent, or part time in the CERL, as described, also
applies to those members meeting the same service criteria who are
subject to PEPRA.
The CERL provides that for a member who is subject to PEPRA for
all or any portion of his or her membership in the county retirement
system, final compensation means the highest average pensionable
compensation earned by the member during a period of at least 36
consecutive months, immediately preceding his or her retirement or
last separation from service if earlier, or during any other period
of 36 consecutive months designated by the member.
This bill would require, when determining final compensation for a
member subject to PEPRA who does not have 3 consecutive years of
earned pensionable compensation due to an absence, the compensation
for any absence to be based on the pensionable compensation of the
position held by the member immediately prior to the absence.
PEPRA requires a public employee, including one who is elected or
appointed to a public office, who is convicted of any state or
federal felony for conduct arising out of, or in the performance of,
his or her official duties in pursuit of the office or appointment,
or in connection with obtaining salary, disability retirement,
service retirement, or other benefits, to forfeit retirement benefits
earned or accrued from the earliest date of the commission of the
felony to the forfeiture date, as specified.
This bill would make a conforming change to the CERL to specify
that a person ceases to be a member for any portion of his or her
service as an elected public officer or as a public employee that is
forfeited under those circumstances.
Under the CERL, except as otherwise specified, a board of
supervisors or the governing body of a district may require that
members pay all or part of the contributions of a member or employer,
or both, for any retirement benefits provided under the CERL, and
designates those payments as employee contributions. Existing law
requires the contributions to be uniform either (1) with respect to
all members of a recognized bargaining unit or (2) within each of the
following classifications: local miscellaneous members, local police
officers, local firefighters, county peace officers, and all local
safety members other than local police officers, local firefighters,
and county peace officers and classifications covered pursuant to
specified provisions in PEPRA.
This bill would revise that latter provision to require the
contributions to be uniform either (1) with respect to all members of
a recognized bargaining unit or (2) all members within each of the
following categories: nonsafety or safety members referenced pursuant
to specified provisions in PEPRA.
The CERL requires specified death benefits, benefits in lieu of
death benefits, and lump-sum benefits paid to surviving spouses of
deceased members to be calculated using the annual compensation
earned by the deceased, as provided.
This bill would instead require those benefits to be calculated
using the pensionable compensation earned by the deceased member, for
a member subject to PEPRA.
The CERL allows certain benefits to members who reenter county
service after an absence from serving in the Armed Forces, and
requires the contributions for those benefits to be calculated or
determined using his or her compensation earnable at the commencement
of the absence.
This bill would instead require those contributions to be
calculated or determined using the pensionable compensation earned at
the commencement of the absence for a member subject to PEPRA.
The CERL authorizes the governing board of the county or district
to elect to contribute for any member who reenters county service
after an absence from serving in the Armed Forces amounts equal to
the contributions which would have been made by the member and the
employer to the system on the basis of compensation earnable at the
commencement of the absence, as specified.
This bill would provide that the authorization does not apply to a
member subject to PEPRA.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31462.05 of the Government Code is amended to
read:
31462.05. (a) For a member who is subject to the California
Public Employees' Pension Reform Act of 2013 for all or any portion
of his or her membership in the county retirement system, "final
compensation" as defined in Section 7522.32 shall apply.
(b) If a member has less than three years of service, that member'
s final compensation shall be determined by dividing the total
compensation by the number of months of service credited to the
member and multiplying by 12.
(c) When determining final compensation for a member who does not
have three consecutive years of earned pensionable compensation due
to an absence, the compensation for any absence shall be based on the
pensionable compensation of the position held by the member
immediately prior to the absence.
SEC. 2. Section 31462.2 of the Government Code is amended to read:
31462.2. (a) "Final compensation" for members whose service is on
a tenure that is temporary, seasonal, intermittent, or for part time
only means one-third of the total compensation earned for that
period of time during which the member rendered the equivalent of
three years of full-time service.
(b) The member may elect at or before the time he or she files an
application for retirement the period of time during which he or she
has earned three full years of credit upon which final compensation
shall be calculated. If he or she does not so elect, that period of
time immediately preceding his or her retirement shall be used.
(c) This section also applies to a member meeting the conditions
specified in subdivision (a), whose service is described in
subdivision (a), and who is subject to the California Public
Employees' Pension Reform Act of 2013 (Article 4 (commencing with
Section 7522) of Chapter 21 of Division 7 of Title 1).
SEC. 3. Section 31563 of the Government Code is amended to read:
31563. Notwithstanding any other provision of law, a person
ceases to be a member for any portion of his or her service as an
elected public officer or as a public employee that is forfeited
pursuant to Sections 7522.70, 7522.72, and 7522.74.
SEC. 4. Section 31631 of the Government Code is amended to read:
31631. (a) Notwithstanding any other law, a board of supervisors
or the governing body of a district may, by resolution, ordinance,
contract, or contract amendment under this chapter, without a change
in benefits, require that members pay all or part of the
contributions of a member or employer, or both, for any retirement
benefits provided under this chapter. All of those payments are
hereby designated as employee contributions. For members who are
represented in a bargaining unit, the payment requirement shall be
approved in a memorandum of understanding executed by the board of
supervisors or the governing body of a district and the employee
collective bargaining representative. The contributions shall be
uniform either (1) with respect to all members of a recognized
bargaining unit or (2) all members within each of the following
categories: nonsafety subject to Section 7522.20 or safety subject to
Section 7522.25.
(b) Nothing in this section shall modify a board of supervisors'
or the governing body of a district's authority under law as it
existed on December 31, 2012, including any restrictions on that
authority, to change the amount of member contributions.
SEC. 5. Section 31649 of the Government Code is amended to read:
31649. (a) Any member who resigns to enter and does enter the
Armed Forces of the United States on a voluntary or involuntary
basis, and within 90 days after the termination of that service under
honorable conditions, reenters county service, or
(b) Any member who obtains a leave of absence to enter and does
enter the Armed Forces of the United States on a voluntary or
involuntary basis, and within one year after the termination under
honorable conditions of leave of absence reenters county service, if
he or she has not contributed to the retirement fund the total
percentage of his or her compensation earnable due pursuant to
Section 31461 or pensionable compensation as defined in Section
7522.34, whichever is applicable, due under this chapter for the
entire period during which he or she was out of county service and in
military service, may, not more than 90 days after his or her
reentrance into county service, file with the board his or her
election that no further contributions be deducted from his or her
compensation except contributions due because of current service.
(c) A member who reenters county service under either (a) or (b)
above may be allowed up to five years credit for vesting in the
system.
SEC. 6. Section 31649.6 of the Government Code is amended to read:
31649.6. (a) Notwithstanding Section 31649 or 31649.5, a member
who resigned from county service, or who obtained a leave of absence
from county service, to enter and did enter the Armed Forces of the
United States on a voluntary or involuntary basis and who then
returned to county service within one year after separation from the
Armed Forces under honorable conditions, shall receive credit for
service and prior service for all or any part of his or her military
service, if, before retirement from the county, he or she contributes
what he or she would have paid to the fund based on his or her
compensation earnable pursuant to Section 31461 or pensionable
compensation as defined in Section 7522.34, whichever is applicable,
at the time he or she resigned or obtained the leave of absence,
together with regular interest thereon.
(b) This section shall not be operative in any county until the
board of supervisors, by resolution, makes this section applicable in
the county.
SEC. 7. Section 31653 of the Government Code is amended to read:
31653. Notwithstanding the provisions of this article, the
governing board of the county or district may elect to contribute for
any member of this system who is absent from and reenters the
service of the county or district pursuant to Section 31649 of this
code, amounts equal to the contributions that would have been made by
the member and the member's employer to the system on the basis of
the member's compensation earnable at the commencement of the
absence, if the member had not been so absent.
If the governing board elects to make any member's contributions
pursuant to this section:
(a) Any such member who exercises or did exercise the right to
contribute to the system during the period of military service shall
have those contributions refunded or credited to that member's
account.
(b) Any such member who withdraws or has withdrawn accumulated
contributions during military service and who does not or did not
redeposit the amount withdrawn upon return to employment with the
county or district is entitled to be credited with any contribution
the governing board elects to make, and to receive credit for service
during the period of absence for military service, the same as if
the member had not withdrawn accumulated contributions, and the rate
for future contributions shall be based upon the member's age at the
commencement of the absence for military service.
(c) The contributions made by the governing board pursuant to this
section shall be available only for the purpose of retirement for
service or for disability, and shall be made available only for the
purpose of retirement, and a member resigning from the service of the
county or district after reinstatement from military service shall
be entitled to withdraw only that portion of accumulated
contributions personally made by the member.
(d) This section shall be retroactively applied to extend its
benefits to such members of this system as the governing board may
determine whose absence from county service on military service
commenced on or after September 16, 1940, and who return or have
returned to this service upon the termination of their military
service.
(e) This section shall not apply to a member who is subject to the
California Public Employees' Pension Reform Act of 2013 (Article 4
(commencing Section 7522) of Chapter 21 of Division 7 of Title 1).
SEC. 8. Section 31781 of the Government Code is amended to read:
31781. The death benefit shall consist of:
(a) The member's accumulated contributions.
(b) An amount, provided from contributions by the county or
district, equal to one-twelfth of the annual compensation earnable or
pensionable compensation as defined in Section 7522.34, whichever is
applicable, by the deceased during the 12 months immediately
preceding his death, multiplied by the number of completed years of
service under the system, but not to exceed 50 percent of such annual
compensation.
SEC. 9. Section 31781.3 of the Government Code is amended to read:
31781.3. The surviving spouse of a member who dies in service
after five years of service or as a result of service-connected
injury or disease may elect, in lieu of the death benefit in Section
31781 or the life annuity provided in Section 31781.1 or 31787, the
benefit that is the sum of both of the following:
(a) An amount, provided from contributions by the county or
district, equal to one-twelfth of the annual compensation earnable or
pensionable compensation as defined in Section 7522.34, whichever is
applicable, by the deceased during the 12 months immediately
preceding his or her death, multiplied by the number of completed
years of service under the system, but not to exceed 50 percent of
that compensation.
(b) A monthly allowance as provided in Section 31781.1 or 31787
reduced by a monthly amount which is the actuarial equivalent of the
amount in subdivision (a) as applied to the life of the surviving
spouse.
SEC. 10. Section 31781.31 of the Government Code is amended to
read:
31781.31. Notwithstanding Sections 31781.1 and 31781.3, the
surviving spouse of a member subject to Section 31751 who dies in
service after 10 years of service, or as a result of
service-connected injury or disease, may elect, in lieu of the life
annuity provided in Section 31765.11 or the death benefit provided in
Section 31781.01, the benefit that is the sum of both of the
following:
(a) An amount, provided from contributions by the county or
district, equal to one-twelfth of the annual compensation earnable or
pensionable compensation as defined in Section 7522.34, whichever is
applicable, by the deceased during the 12 months immediately
preceding his or her death, multiplied by the number of completed
years of service under the system, but not to exceed 50 percent of
that compensation.
(b) A monthly allowance as provided in Section 31765.11 reduced by
a monthly amount which is the actuarial equivalent of the amount in
subdivision (a) as applied to the life of the surviving spouse.
SEC. 11. Section 31787.6 of the Government Code is amended to
read:
31787.6. A surviving spouse of a safety member who is killed in
the performance of duty or who dies as the result of an accident or
injury caused by external violence or physical force, incurred in the
performance of his or her duty, shall be paid the following amount
in addition to all other benefits provided by this chapter:
A one-time lump-sum benefit equal to an amount, provided from
contributions by the county or district, equal to the annual
compensation earnable or pensionable compensation as defined in
Section 7522.34, whichever is applicable, by the deceased at his or
her monthly rate of compensation at the time of his or her death.
This section is not applicable to members described in Section
31469.2.
